New research has indicated that the implementation of the changes in the taxes will put off many investors from entering the buy to let market according to propertywire.com.
The article shows that according to the research undertaken by Orchard and Shipman Group, a lettings and property management company, over 25 per cent of existing landlords are planning on selling their properties either in part or as a whole portfolio, with 18 per cent looking to pull out of the market completely. Over 90 per cent believe that they should have the ability to deduct genuine expenses in the same way as other businesses and that ultimately they believe the changes will lead to a shortage of rental housing.
The statistics also indicate that 86 per cent believe that it will stop investment in the market with over half of landlords surveyed confirming that they would be putting up rents to cover the increases in their financial costs.
Chief executive officer of Orchard and Shipman Residential, Mr Shane Spiers said “‘The Government’s changes to the way buy to let investors are taxed will inevitably impact revenue. The shortage of housing, a growing rental market and rising property prices is driving increased demand for rental properties,’ adding ‘With these market conditions at play, it’s no surprise that landlords will be putting up rents to supplement their income. Unfortunately, it is tenants that will feel the brunt of the tax changes’.
In the article Mr Spiers points out that many investors and landlords are dedicated to providing properties for the rental sector and would undertake any measures to protect their investments, adding ‘Our research shows that the majority of landlords are looking at ways to recover the potential drop in revenue and we are advising landlords on the options available to them. I believe that the buy to let market will pull together to ensure it continues to provide much needed accommodation to meet growing tenant demand’.
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